Q: At some point, most parents find themselves wondering if they should give their child an allowance. What should parents consider when it comes to an allowance for children?
A: Age is a big factor to think about. If your child is at the age where they start asking about how much things cost and they understand that saving can get you what you want, then your child may be ready for a small allowance.
Q: If parents decide to start an allowance for children, what is the right amount to start with?
A: It’s much easier to start smaller and work your way up than it is to start with a larger amount and try to work your way down. The best advice is to start with an amount where your children can start to see their savings grow and they could reach a simple savings goal. As they get older, and can be more responsible you will want to consider increasing it.
Q: Is there anything else that should be taught along with receiving an allowance.
A: Yes, getting an allowance should be use as an opportunity to teach kids about the importance of saving vs spending. Some parents use it as an opportunity to teach their kids about earning money too.